Growing and Internationalizing the Entrepreneurial Firm Quiz-5

One general conclusion that we can reach regarding entrepreneurship is that:

• regulatory burdens on new start-ups are much easier in poorer countries.

• the less entrepreneur-friendly a country’s formal institutional requirements are the more likely entrepreneurship will contribute to economic development.

• collectivistic societies may result in relatively higher levels of entrepreneurship.

• individualistic and low uncertainty-avoidance societies tend to foster relatively more entrepreneurship.

Which of the following best describes Foreign Direct Investment (FDI)?

• A firm avoids the use of financial intermediaries such as brokers.

• A firm invests directly in production or service activities in another country.

• Managers travel to a country to invest instead of using the Internet.

• A firm uses cash instead of credit.

Loans in small amounts of US$50–US$300 that are made with the intention of helping lift entrepreneurs out of poverty are called:

• equity stake.

• microloans.

• venture capital.

• initial public offerings.

Born global firms are:

• not generally subject to transaction costs.

• generators of much of the world’s employment.

• firms that attempt to do business aboard from their inception.

• firms that have great difficulty internationalizing.

As government policies in China became more friendly toward entrepreneurship:

• social norms still restrict most entrepreneurial activity.

• institutional transitions have encouraged more entrepreneurship.

• the risk avoidance culture has completely altered.

• the culture as become more collectivistic.

According to the institution-based view:

• it is relatively easy to establish a start-up in any country.

• both formal and informal institutional constraints affect entrepreneurship.

• governments in less developed countries tend to impose fewer procedures, resulting in lower total cost.

• flourishing entrepreneurship is unrelated to the level of development in a country.

In the process of internationalization, which model states that firms must enter culturally and institutionally close markets first, spend enough time there to accumulate overseas experience, and then gradually move from exports to more sophisticated strategies?

• The stage model

• The born-global model

• The experiential model

• The leveraged model

Entrepreneurship involves which of the following?

• The limitation of opportunities

• The processes of discovery, evaluation, and exploitation of opportunities

• The set of individuals who develop regulations that drive opportunities

• The ability to serve as an intermediary while not being exposed to risk

Which would tend to result in a greater level of entrepreneurship?

• Increased strength of incumbents

• Capital-intensive industries

• Weak bargaining power of suppliers

• Ability to reduce the bargaining power of buyers

When a firm becomes a supplier to a foreign firm that enters the domestic market, this is an example of:

• direct exports in the domestic market.

• internationalizing in the domestic market.

• franchising in the domestic market.

• harvesting in the domestic market.